Assume the following capital lease: Present value (PV) of lease payments at 10 percent is $ 25000. The leased asset is depreciated straight line over 5 years. The lease payment is $ 6000. The first payment of $ 6000 is to be paid at the end of the year. On a before tax basis, the income reported under capital lease compared with that reported under an operating lease for the first year will be:

单项选择题Sweet Milk Inc uses the LIFO inventory method and had 5000 units of beginning inventory on January 1,2002, that was valued at $10.00 a unit. The company purchased 50000 units at $12 a unit and sold 52000 units at $15 a unit. Sweet Milk is considering an additional purchase of 10000 units at $13 a unit. The company will make the purchase at the end of December or in the early part of year 2003. Which statement about the effect of the purchase decision on net income is most accurate（）

A. Making the purchase in December will increase income by $16000 in year 2002. 
B. Income for year 2002 will not be affected no matter when the inventory is purchased. 
C. Postponing the purchase until January will increase income for 2002 by $14000.

单项选择题A company purchased a new pizza oven directly from Italy for $ 12675. It will work for 5 years and has no salvage value. The tax rate is 41 percent, and annual revenues are constant at $ 7192. For financial reporting, the straight-line depreciation method is used, but for tax purposes depreciation is accelerated to 35 percent in years 1 and 2, and 30 percent in year 3. For purposes of this exercise ignore all expenses other than depreciation. Assume the tax rate for years 4 and 5 changed from 41 percent to 31 percent. What will be the deferred tax liability as of the end of year 3 and the resulting adjustment to net income in year 3 for financial reporting purposes due to the change in the tax rate Deferred Tax Liability Net Income ①A. $1572 $ 507 ②B. $1572 $ 747 ③C. $1039 $ 5O7